PensionBox BlogsWhat the world needs to know about the Gender Pension Gap

What the world needs to know about the Gender Pension Gap

05 Sep 20263 min read
Written By
Vanshika Agarwal
Vanshika Agarwal
PensionBox

How do you think your grandmother manages her monetarily needs?

Does she get a monthly income to survive? If so, how much? Do you think that’s enough to sustain? Well, we see differences among men and women in almost every sphere of life. It can range from education, securing a job to having equal growth opportunities. Pension pay is just one of the many gaps that exist among genders that are not even discussed. The global gender gap report found out that there is a 9% gender pay gap which has further led to a 40% decline in pension paid to women as compared to men globally.

The gender pension gap is the percentage difference of pension income between pension income received by men and women. This gap has proved to be more harmful to women as they have access to a lower stream of income. Our men however, seem to have things somewhat figured out when it comes to financial planning and it’s our women who need to become more woke about topics like retirement and pension planning.

In India, most women do not even have access to pensions. The money that they get in their old age is either their husband’s pension or meagre savings that they’ve over their lives. The women who do get pensions have an equally miserable life as the funds are much lower compared to men. Most women have shorter careers due to starting late, career gaps due to childbirth and early retirement. As observed by industry standards women also face a huge pay gap i.e., lower salaries when compared to their male counterparts. Women also don’t have access to leadership opportunities in many organisations which leads to faster job switching or many times leaving the workforce.

Women face other gender stereotyping and socio-economic challenges that often lead to quitting the workforce eventually leading to lower pension payouts. There is a lack of good childcare facilities causing women to step out and do the unappreciated and unpaid work of taking care of the house and family.

What our women truly need is to step up when it comes to money matters. Starting, they can educate themselves on personal finances. Here are a few steps women can take to educate themselves on personal finance which will surely help to reduce the gender pension gap.

  • Step 1: Setting up Financial Goals and adding monetary value to them.
    E.g.,(1) Retirement fund should have Rs. 1 Crore in 30 years.
    (2)Tuition fees for University - Rs. 25 Lacs in 10 years.

  • Step 2: Figuring out your monthly expenses and savings. At the same time, understanding your risk appetite.

  • Step 3: Educating oneself on investing avenues and figuring out the right platforms to save your money.

  • Step 4: Choosing and then Investing in the suitable instruments that match your risk appetite and meet your financial requirements timely.

  • Step 5: Revisit your goals and readjust your portfolio according to the market scenarios.

What can we do?

Pension Planning has a huge need and if done right it has the potential to make you lead a much happier and more fulfilling life. Pensionbox is a digital pension platform that helps you plan your golden days so that you can lead a stress-free life.
Sign up today to know more about us.

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Frequently asked questions
PensionBox is India’s first pension platform/app that helps you access, invest in, and track your NPS and other pension products with better user experience & minimum charges.

PensionBox simplifies the National Pension System(NPS), the government's pension scheme for private employees both for retail users and HRs/companies.

If you don’t have an NPS account, you can simply open your pension account within 2 minutes and if you have NPS PRAN already, you will be able track, invest and manage everything free of charge with best user experience.
Absolutely. PensionBox is fully ISO 27001 compliant with the Pension Fund Regulatory and Development Authority (PFRDA), the government body that regulates pensions in India.

We never touch or hold your money directly, your investments go safely to your chosen pension fund through approved channels.

We are built with Zerodha as POP , ensuring transparency, data security, and peace of mind. Your retirement savings are protected by regulation and secured by technology.
Banks/POPs charges high fees on account opening & every investment Even CRA apps have hidden charges/low transparency & lack timely support Pension Funds restrict pension fund choice & selection to themselves.

That’s why, PensionBox brings transparency, zero charges, timely support and freedom to select any pension fund so that you get the best experience investing in NPS & be better future ready.

That’s not it, we help you & your company together to maximise contribution and tax savings with minimal charges & best user experience.
It’s super easy to use PensionBox, just start by signing up using your browser on laptop/mobile or downloading the app on appstore or playstore.

If you are an existing zerodha user then you get a fast login or sign up using kite ID.

Once you are onboarded with kite ID, you get free access to
  • Open NPS in 2 minutes
  • Track existing NPS
  • POP shift or CRA shifting
  • Invest in one time or create SIP in NPS
  • Withdraw NPS requests & instant withdraw tier 2
  • Create your dream retirement plan
  • Open NPS Vatsalya for your kid
  • Share with HR (To unlock more tax benefits)
Tax Benefits in New Tax Regime
  • Employer Contribution:
    • Contributions made by your employer to your NPS account are tax-free up to 14% of your basic salary under Section 80CCD(2). Do connect us with your HR to enable this for you.
    Tax Benefits in Old Tax Regime
  • Self-Contribution:
    • Deduction up to ₹1.5 lakh under Section 80C.
    • Additional deduction of ₹50,000 under Section 80CCD(1B) — exclusive to NPS investments!
    • This allows you to claim a total deduction of up to ₹2 lakh every year on your NPS contributions.
  • Employer Contribution:
    • Contributions made by your employer to your NPS account are tax-free up to 10% of your basic salary (Basic + DA) under Section 80CCD(2). Do connect us with your HR to enable this for you.
    • This is over and above your personal deduction limits, giving you extra tax efficiency.
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